Supply Chain Finance at Procter & Gamble Case Solution & Answer

Supply Chain Finance at Procter & Gamble Case Solution

In April 2013, Procter & Gamble (P&G), the world’s biggest customer packaged products (CPG) business, revealed that it would extend its payment terms to providers by 30 days. At the same time, P&G revealed a brand-new supply chain funding (SCF) program providing providers the capability to get affordable settlements for their P&G receivables.

Fibria Celulose, a Brazilian provider of kraft pulp, signed up with the program in 2013, however was re-evaluating the expenses and advantages of taking part in the SCF program in the summer season of 2015. The company’s treasury group and its United States nation supervisor need to choose whether to keep utilizing the program and, if so, whether to keep their prevailing SCF banking relationship or begin a brand-new relationship with another worldwide SCF bank.